Defence Acquisition Procedure 2020 amended to promote ‘Make in India’ & ‘Aatmanirbharta’ in defence

To further promote ‘Make in India’ and ‘Aatmanirbharta’ in defence and enable Ease of Doing Business, Defence Acquisition Procedure (DAP) 2020 has been amended based on the approvals accorded by Defence Acquisition Council (DAC) in respect of the following:

·      Going forward all modernisation requirements of the Defence Services and Indian Coast Guard are to be indigenously sourced irrespective of the nature of procurement. Import of defence equipment/sourcing from Foreign Industry of capital acquisitions should only be an exception and undertaken with specific approval of DAC/Raksha Mantri.

·      As advised by Ministry of Finance and to reduce financial burden on the Indian Defence Industry whilst maintaining financial safeguards, requirement of Integrity Pact Bank Guarantee (IPBG) has been dispensed with. Instead, Earnest Money Deposit (EMD) will be taken as a bid security for all acquisition cases with Acceptance of Necessity (AoN) cost more than Rs 100 crore. EMD will be valid for the selected vendor up to signing of contracts and returned to remaining vendors post declaration of selection. Post contract, Integrity Pact will be covered through the Performance Cum Warranty Bank Guarantee (PWBG). Further, as per extant Government of India policy, EMD is not required from Micro and Small Enterprises (MSEs).

·      To encourage wider participation and broad base indigenous defence manufacturing sector in the country, the total order quantities in acquisition cases are to be split between shortlisted vendors, wherever viable. Further, the other technically qualified bidders who have not been awarded contract will be issued a certificate by the Services indicating that the product has been successfully trial evaluated, to facilitate vendors to explore other markets.

·      To create an ecosystem which fosters innovation and encourages technology development in Defence by engaging R&D institutes, academia, industries, startups and individual innovators, the iDEX framework was launched by Prime Minister Shri Narendra Modi in April 2018. Existing provisions of DAP 2020 links the procedures of Staff Evaluation, CNC and award of Contract for iDEX procurement, to the procedure in ‘Buy (Indian- IDDM)’, which entails a long period of approximately two years before placement of the order. To enable the budding startup talent pool of the country to contribute towards the twin mantras of self-sufficiency and indigenization, the procurement process under iDEX procedure of DAP 2020 has been simplified. With this simplification, time taken from grant of AoN to signing of contract will be reduced to 22 weeks.

·      Make-II procedure of DAP-2020, involving indigenisation of defence equipment through industry funded projects at prototype development stage, has been simplified by incorporating Single Stage Composite Trials of prototypes and dispensing off with quantity vetting and scaling for initial procurements in the delegated cases. Post simplification, the timelines in Make-II procedure will be reduced to 101-109 weeks from an existing total time-period of 122-180 weeks.



(Release ID: 1819937)
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RTO of LTKM Berhad via the Acquisition of EMS Business for RM336 Million

LTKM Berhad (LTKM), a leading chicken egg producer, today announced a composite proposal, chiefly to divest the Company’s existing business and venture into the business of providing of electronic manufacturing services (EMS) while at the same time, rectify its non-compliance with the public spread requirement of its shares under the listing requirements of Bursa Securities Malaysia Berhad.
Executive Chairman of LTKM, Datuk Tan Kok said, “At its core, the proposals seek to reward our shareholders from the proceeds of the disposal of the Company’s existing poultry business while at the same time, allow them to continue participating in the new EMS business following the proposals.”

“The proposed disposal comes amid the challenging operating landscape for the poultry industry brought on by overcapacity, low average selling price of eggs, high raw material prices, difficulty in controlling disease outbreaks in the farms and acute labour shortage. In relation to these challenges, we have also incurred losses in the recent financial years ended 31 March 2020 to 2021 and for the nine-month period ended 31 December 2021. This has affected our ability to pay dividends too.”

“Concurrent with the proposed disposals, we believe the proposed acquisition of the EMS business is an opportunity to create value for our shareholders through a business that is viable and profitable.”

Briefly, the proposals comprise the following inter-conditional steps:

1. Proposed disposal of LTKM’s existing business to Ladang Ternakan Kelang Sdn Bhd (LTKSB) for a total cash disposal consideration of RM158.83 million. LTKSB, which holds 71.6% of the equity interest in LTKM, is also the holding company of LTKM;

2. Proposed special dividend and capital repayment of RM1.1098 per LTKM share totalling RM158.83 million on an entitlement date to be determined;

3. Proposed consolidation of two existing LTKM shares into one LTKM share following the proposed special dividend and capital repayment;

4. Proposed acquisition by LTKM, of 100.0% equity interest in Local Assembly Sdn Bhd (Local Assembly) from Chai Voon Sun, Gurmakh Singh a/l Ajmer Singh, Wee Thian Song, Divine Inventions Sdn Bhd and Proven Venture Sdn Bhd (Vendors) for RM336.00 million to be satisfied through cash of RM100.00 million and the issuance of 393,333,333 new LTKM shares at an issue price of RM0.60 each;

5. Proposed restricted issue of 230.00 million new LTKM shares at an indicative issue price of RM0.60 each, representing 33.1% of the enlarged share capital of LTKM after the proposals to investors to be identified;

6. Proposed exemption to the vendors and persons acting in concert from the obligation to undertake a mandatory take-over offer to acquire the remaining LTKM shares not already owned by them upon completion of the proposed acquisition; and

7. Proposed change of name to “LA Technology Berhad” from “LTKM Berhad”.

The proposed acquisition will result in a significant change in LTKM’s business direction from a producer of chicken eggs to becoming an EMS provider. Local Assembly, an EMS provider, will become a wholly-owned subsidiary of LTKM while the vendors of Local Assembly will become LTKM’s controlling shareholders with a 56.6% equity interest in the Company following the proposed acquisition and proposed restricted issue. By virtue of his shareholding in Divine Inventions, Datuk Seri Chiau Beng Teik, the Executive Chairman of Chin Hin Group Berhad, will become a major shareholder of LTKM.

Under the proposed acquisition, the vendors have provided a profit guarantee for Local Assembly of a minimum profit after tax (PAT) of RM28.00 million for the financial year ending 31 December 2022 or not less than an aggregate of RM50.00 million PAT for both financial years ending 31 December 2022 and 2023. Based on the guaranteed PAT of RM28.00 million for the financial year ending 31 December 2022, the purchase consideration represents a price to earnings multiple of 12 times.

For Chai Voon Sun, co-founder and Managing Director of Local Assembly, the listing of Local Assembly via LTKM means a realisation of 2 decades of hardwork for him and his co-founders and a step forward in the company’s journey of growth and expansion. “This transaction is a major milestone for Local Assembly. We look forward to the next phase of our corporate journey as a listed entity, which will further accelerate our growth as an EMS player, allow us to expand our customer base and product offerings and pursue more opportunities” he adds.

Local Assembly, which started operations in 2000, is a manufacturer of electronic, electrical and plastic injection moulded components, and sub-contract assembler of electrical appliances and equipment. Its principal markets are Malaysia and Singapore. For the financial year ended 31 December 2022, Local Assembly achieved PAT of RM20.06 million on the back of a revenue of RM116.35 million.

The application for the proposals is expected to be submitted to the relevant authorities by the second quarter of 2022. Subject to approvals from relevant parties including Securities Commission, Bursa Securities Malaysia Berhad as well as shareholders of LTKM, the proposals are expected to be completed in the first half of 2023.

M & A Securities Sdn Bhd is Adviser to LTKM for the proposals.

LTKM Berhad:

Topic: Merger & Acquisition

CCI approves acquisition of stake in Busybees Logistics by TPG

The Competition Commission of India (CCI) approves acquisition of the stake in Busybees Logistics by TPG.

The proposed combination envisages acquisition of ~7% shareholding of Busybees Logistics Solutions Private Limited (Xpressbees) by TPG Growth V SF Markets Pte. Ltd. (TPG SF).

TPG SF is majority owned and controlled by certain affiliates of TPG, Inc. TPG, Inc. is the ultimate holding company of the TPG group. TPG Group is an investment firm and has assets under management in sectors such as consumer, healthcare, technology, financial services, travel, media and real-estate.

Xpressbees is engaged in the business of providing logistics and delivery solution services including express parcel shipping services, B2B part truck load and full truck load freight services, cross border logistics and third-party (3P) logistics / contract logistics.

Detailed order of the CCI will follow.



(Release ID: 1808802)
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Atos completes acquisition of Cloudreach

Paris France – WEBWIRE

Atos announced that it has completed the acquisition of Cloudreach, a leading multi-cloud services company specializing in public cloud application development and cloud migration, with strong partnerships with all three hyperscalers. Through this acquisition Atos welcomes over 600 highly skilled cloud professionals to further strengthen its global cloud expertise.

Cloudreach brings extensive cloud-native expertise and rich global partnerships with AWS, GCP and Azure including the recently signed AWS Strategic Collaboration Agreement and the announcement of Cloudreach as the 2021 AWS Consulting Partner of the Year for UKI. Atos will also further strengthen its cloud innovation and automation with the leading Cloud planning and assessment software Cloudamize, which brings new capabilities in cloud migration, to its Atos OneCloud practice. Atos OneCloud blends cloud advisory consulting, application transformation expertise, prebuilt cloud accelerators, and innovative talents in an end-to-end set of services to help clients navigate their cloud journey securely and with speed.

Completing this acquisition, along with those of Syntel, Maven Wave, Edifixio and most recently VisualBI and AppCentrica, reinforces the Group’s strategic vision of cloud as the foundation of business transformation.

Learn more on how Atos is enhancing business transformation in public, private and hybrid cloud strategies through Atos OneCloud on the website here.

About Atos

Atos is a global leader in digital transformation with 107,000 employees and annual revenue of over € 11 billion. European number one in cybersecurity, cloud and high performance computing, the Group provides tailored end-to-end solutions for all industries in 71 countries. A pioneer in decarbonization services and products, Atos is committed to a secure and decarbonized digital for its clients. Atos is a SE (Societas Europaea), listed on Euronext Paris and included in the CAC 40 ESG and Next 20 Paris Stock indexes.

The purpose of Atos is to help design the future of the information space. Its expertise and services support the development of knowledge, education and research in a multicultural approach and contribute to the development of scientific and technological excellence. Across the world, the Group enables its customers and employees, and members of societies at large to live, work and develop sustainably, in a safe and secure information space.

CCI approves proposed combination involving (a) acquisition of stake by Veolia Environnement S.A (Veolia) in SUEZ (S.A), and (b) acquisition of stake in New Suez by Meridiam, Global Infrastructure Management, LLC, La Caisse des dépôts et consignations and CNP Assurances

The Competition Commission of India (CCI) approves proposed combination involving (a) acquisition of stake by Veolia Environnement S.A (Veolia) in SUEZ (S.A), and (b) acquisition of stake in New Suez by Meridiam, Global Infrastructure Management, LLC, La Caisse des dépôts et consignations and CNP Assurances.

Veolia – Veolia is incorporated in France. Veolia operates through three business lines worldwide for (i) water management, (ii) waste management, and (iii) energy solutions and sources.

Suez – Suez is incorporated in France. Currently, Suez is deployed in three business segments worldwide: (i) Water, (ii) Recycling and Recovery, and (iii) Environmental Tech & Solutions.

Meridiam – Meridiam, incorporated in France is a global player, specializing in the development, financing and long-term management of infrastructure. Meridiam develops, finances, builds and manages various types of projects including, transport infrastructure (high-speed railways, motorways, tunnels, ports, tramways, etc.), social infrastructure (schools, universities, healthcare centers, stadiums, etc.), public buildings (courthouses, government offices, ministries, etc.), networks and public services (water, waste management, energy, etc.)

GIP – GIP is incorporated in USA, is an independent infrastructure fund manager investing in the transportation, energy, waste and water sectors. GIP manages approximately USD billion in assets across all sectors and its portfolio companies generate combined annual revenues of USD billion dollars.

CDC – CDC is a French public establishment with a special legal status created by the law of 28 April 1816 and governed by Articles L. 518-2 and seq of the French Monetary and Financial Code. CDC carries out public interest missions in support of public policies conducted by the State and local authorities, focusing on economic, social and sustainable development. Through its subsidiaries, CDC also has activities that are open to competition and are grouped around four divisions: (i) environment and energy, (ii) real estate, (iii) capital investment, and (iv) services.

CNP – CNP is incorporated in France and is 100% controlled by CDC. CNP is active in the insurance market in Europe and Latin America. As an insurance, coinsurance, and reinsurance provider, CNP designs innovative personal risk/protection and savings/retirement solutions.

Detailed order of the CCI will follow.



(Release ID: 1774331)
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